diff --git a/cmd/password_reset.go b/cmd/password_reset.go
index 6a6412518..5493bd956 100644
--- a/cmd/password_reset.go
+++ b/cmd/password_reset.go
@@ -23,8 +23,8 @@ func runPasswordReset(cmd *cobra.Command, args []string) {
 		log.FATAL.Fatal(err)
 	}
 
-	// setup environment
-	if err := configureEnvironment(cmd, &conf); err != nil {
+	// setup persistence
+	if err := configureDatabase(conf.Database); err != nil {
 		log.FATAL.Fatal(err)
 	}
 
diff --git a/cmd/password_set.go b/cmd/password_set.go
index 2f1b2d75a..7148934b1 100644
--- a/cmd/password_set.go
+++ b/cmd/password_set.go
@@ -23,8 +23,8 @@ func runPasswordSet(cmd *cobra.Command, args []string) {
 		log.FATAL.Fatal(err)
 	}
 
-	// setup environment
-	if err := configureEnvironment(cmd, &conf); err != nil {
+	// setup persistence
+	if err := configureDatabase(conf.Database); err != nil {
 		log.FATAL.Fatal(err)
 	}
 
diff --git a/cmd/password_test.go b/cmd/password_test.go
new file mode 100644
index 000000000..40f711bda
--- /dev/null
+++ b/cmd/password_test.go
@@ -0,0 +1,49 @@
+package cmd
+
+import (
+	"path/filepath"
+	"testing"
+
+	"github.com/evcc-io/evcc/api/globalconfig"
+	"github.com/evcc-io/evcc/core/keys"
+	"github.com/evcc-io/evcc/server/db/settings"
+	"github.com/evcc-io/evcc/util/auth"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+)
+
+// TestPasswordWithInvalidSponsorToken verifies that password commands work
+// even when an invalid sponsor token is present in the database
+func TestPasswordWithInvalidSponsorToken(t *testing.T) {
+	tmpDir := t.TempDir()
+	dbPath := filepath.Join(tmpDir, "test.db")
+
+	// Setup database (same as password commands do)
+	err := configureDatabase(globalconfig.DB{
+		Type: "sqlite",
+		Dsn:  dbPath,
+	})
+	require.NoError(t, err)
+
+	// Store invalid sponsor token
+	settings.SetString(keys.SponsorToken, "invalid-token")
+	storedToken, err := settings.String(keys.SponsorToken)
+	require.NoError(t, err)
+	assert.Equal(t, "invalid-token", storedToken)
+
+	// Set password - should work despite invalid sponsor token
+	authInstance := auth.New()
+	err = authInstance.SetAdminPassword("test-password")
+	require.NoError(t, err)
+
+	// Verify password works
+	assert.True(t, authInstance.IsAdminPasswordValid("test-password"))
+
+	// Reset password - should work despite invalid sponsor token
+	authInstance.RemoveAdminPassword()
+
+	// Verify password was removed
+	storedHash, err := settings.String(keys.AdminPassword)
+	require.NoError(t, err)
+	assert.Empty(t, storedHash)
+}